With the growth of influencers, social media, and the ability to turn an online presence into a full-time job, we have seen the birth and rise of affiliate marketing.
What Is Affiliate Marketing?
Affiliate marketing is a performance-based model in which individuals (affiliates) earn commissions for promoting another company’s products or services, typically through unique tracking links. When someone buys or takes a desired action (such as signing up) after clicking an affiliate link, the affiliate is paid a percentage of the sale or a flat fee, effectively serving as an outsourced sales team for the business.
It’s a popular way for bloggers, influencers, and content creators to generate income by recommending products that they trust.
Social media platforms have integrated shopping features that simplify affiliate marketing. TikTok Shop, Instagram Shopping, Pinterest Shopping, and YouTube Shopping let affiliates tag products directly in their content, making it easier for followers and viewers to buy without leaving the app.
This integration helps to reduce friction in the buyer’s journey. Rather than clicking out to a website, customers can complete purchases within the social media app where they’re already engaged with the content.
The Three Types of Affiliate Marketing
Unattached Affiliate Marketing
Unattached affiliates have no connection to the products they promote. They typically run paid ads or SEO campaigns to drive traffic to affiliate links without personally using or endorsing the products.
This approach often generates the lowest conversion rates due to a lack of trust and authority behind the recommendation.
Example: A ‘best product’ review site that ranks products/top picks.
Related Affiliate Marketing
Related affiliates promote products in their niche or category but haven’t personally used them. This leverages existing audience trust in the affiliate’s expertise, even when specific product experience isn’t there.
Example: A fitness influencer promoting workout equipment they haven’t used.
Involved Affiliate Marketing
Involved affiliates only promote products they’ve personally used and genuinely recommend. This is the most authentic approach as affiliates will have tested the product, experienced its benefits, and can be more honest with their audience.
This authenticity builds trust and typically generates the highest conversion rates.
Example: A beauty influencer promoting skincare products they use daily.
Affiliate Marketing Payment Models
Affiliate programs compensate creators using one or more of the following models:
- Pay-Per-Sale (PPS): Earn a percentage of each sale.
- Pay-Per-Click (PPC): Earn money when someone clicks your affiliate link, regardless of whether they purchase.
- Pay-Per-Lead (PPL): Earn when someone completes a specific action, like signing up for a free trial.
- Pay-Per-Install (PPI): Earn when someone downloads and installs an app or software.
- Recurring Commissions: Earn ongoing commissions for subscription products.
Many affiliate programs combine models. Software-as-a-service (Saas) companies often offer recurring commissions, whilst e-commerce brands typically use pay-per-sale.
Average affiliate commission rates vary by category:
- Apparel & Accessories: 8-15%
- Beauty & Personal Care: 10-18%
- Health & Wellness: 8-15%
- Food & Beverage: 8-12%
- Electronic & Gadgets: 5-10%
- Home & Lifestyle: 8-12%
- Sport & Outdoor: 8-12%
- Jewellery & Accessories: 10-15%
- Pet Products: 10-15%
Pros & Cons of Affiliate Marketing
Affiliate Marketing Pros
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Minimal Costs
There are very few costs associated with affiliate marketing. There may be small content-creation costs associated with the link you use, or the affiliate program you sign up for may charge a fee, but there are no other associated costs.
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Easy to Set Up
Almost anyone can set up affiliate marketing; you just need to follow a few basic steps when signing up for a platform. It will be more successful in the long run if you already have an online following or a social media presence, but you can build one if not.
If a product doesn’t sell well, you haven’t lost inventory; you can just redirect efforts towards better-performing products or programs.
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Extensive Products and Services/ Ability to Scale
You can use this type of marketing for almost any service or product, making potential earnings substantial. If you wanted to, you could focus your attention solely on the products or services that earn you the highest commission, although these may be things that your audience doesn’t buy as often.
Cons of Affiliate Marketing
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Commission-Based Payments
Affiliate marketing is commission-based, meaning you typically only earn a commission when someone purchases through your link. If no one uses your link, you won’t earn any revenue.
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Potentially Crowded Market
Whilst it’s easy to get set up in affiliate marketing, it’s harder to gain traction. It’s an increasingly crowded market with a lot of great talent competing for consumer attention, so it takes a lot of effort to stand out and encourage followers to click your links.
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Uncertainty
You might have a successful month with high commission, and the next few months may be very quiet. You have to be ready for this level of uncertainty when you’re building a business around affiliate marketing. It isn’t for everyone, and you need to be financially savvy to manage your finances.
Affiliate Marketing Channels: Where to Promote
The most successful affiliates diversify across channels rather than relying on a single traffic source. Each platform serves different audience behaviours and content formats.
Blogging: SEO Drives Consistent Traffic
Blog posts generate organic search traffic for years after publication. Detailed product reviews, comparison articles, and how-to guides work especially well. Optimise your posts for search engines and target long-tail keywords such as ‘best X for under £100’. Include affiliate links naturally within helpful content; readers searching for specific product information have high purchase intent.
Social Media: Engage Audiences Where They Already Spend Time
Instagram, TikTok, Facebook, and other social media platforms offer direct audience connection. You can share product recommendations through posts, stories, and videos.
Always disclose affiliate relationships. Use hashtags like #affiliate or #ad clearly.
YouTube: Video Content Builds Trust
Detailed product reviews, unboxing videos, and tutorials showcase products in action. Viewers get to see how a product looks, works, and functions before purchasing.
People actively searching for product reviews/unboxings have strong purchase intent.
Place affiliate links in video descriptions and mention them verbally during the video.
Email Marketing: Direct Communication Drives Conversions
Email lists give you access to an owned audience. No algorithm changes can take that away.
Build your email list by offering valuable resources such as guides, templates, courses, or exclusive content. Nurture subscribers with helpful information, not constant sales pitches.
Segment your list based on interests. Send targeted recommendations that match subscriber preferences.
Podcasting: Audio Builds Authentic Connections
Podcast listeners develop strong host relationships. They trust your recommendations because they feel like they know you personally.
Share affiliate links in show notes. Mention custom discount codes during episodes so listeners feel valued.
Getting Started with Affiliate Marketing
Where to Find Affiliate Programs:
- Direct From Brands: Many companies run in-house programs. Check for [brand name] affiliate program in search engines.
- Affiliate Networks: Platforms like Awin, CJ Affiliate, Impact, and Click Bank connect affiliates with multiple brands.
- Amazon Associates: The Amazon affiliate program offers easy entry with millions of products, though commission rates are typically lower, 1-10%.
- Shopify Affiliate: Get paid when you refer new merchants to Shopify plans or earn money for every eligible Point of Sale Pro referral.
- Platform-Specific Programs: TikTok Shop, YouTube shopping, and Instagram Shopping offer built-in affiliate features.
- Like To Know It: LTK is an influencer marketing network that helps agencies and affiliates find influencers and creators to promote their clients’ brands.
The Legal Bit
When it comes to advertising, some rules and regulations must be followed in the UK. These are set by the Advertising Standards Agency (ASA) and follow the guidelines of the Committee of Advertising Practice (CAP). The rules are in place to protect consumers from being mis-sold or falsely misinformed about a product or service.
The CAP code applies to affiliate marketing because it is an agreement to promote a brand’s products in exchange for payment.
To adhere to the CAP code and ensure you aren’t subject to any criminal penalties or complaints to the ASA, you must ensure you’re transparent about any affiliate relationships with the products or services you are marketing throughout your content.
You Might Find Interesting:
- Our guide on What is Content Marketing
- Our guide on Google Ads vs Meta Ads
- Our guide on How Does Pay-Per-Click (PPC) Marketing Work
